Market trends force video rental store to change strategies - KWWL - Eastern Iowa Breaking News, Weather, Closings

Market trends force video rental store to change strategies

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WATERLOO (KWWL) -

Its another sign of the changing times -- fewer families are renting movies from traditional stores.

According to a report from Home Media Market Research, most people get the latest movie in the mail, through Blockbuster and Netflix. 25% of Americans pick up movies at a kiosk like RedBox. Only 17% actually go into a store and rent a favorite film.

It's forcing one Cedar Valley business to rethink its strategy. More than ten years ago, a small business known as Digital Dog Pound launched on the internet. It did so well, the owners decided to take the online business into the offline world.

"Stores that we opened last year in Oelwein and Decorah...those are going great. The community is supporting them," said Digital Dog Pound Inc. owner Matthew Schneider.

But in larger communities, a certain big red machine is eating up the rental market.

"The rental side, there was too much competition with RedBox, Netflix," said Schneider. "As of Friday we will begin closing this store."

The owners realized it just wasn't paying off for them to continue renting new movies in Waterloo. But they noticed a trend in a different direction -- selling used movies and video games. People still want to own movies, they just don't want to pay full price for them.

So after Digital Dog Pound closes in Waterloo the owners are opening a new, used movie and game store.

"We actually own a consignment store in Waverly and that business is growing like crazy as well," noted Schneider.

It may be a sign of challenging times, but they're hoping it's also a nod to a better future.

"It really is just an evolution of our business. But it is a sign that the video store is dying," Schneider added.

The owners say Digital Dog Pound in Waterloo will stay open as long as it takes to sell their current merchandise. They're hoping to launch the used movie and game store in September. The other locations are not affected by the changes.

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